When a Stop-Loss/profit Order Is Taken, the Rate Specified in the Order

question 431

Multiple Choice

When a stop-loss/profit order is taken, the rate specified in the order:

• A) Must be transacted regardless of where the market moved.
• B) Must be transacted if a broker confirms that the rate specified was reached.
• C) Cannot be taken as a fixed-price guarantee.
• D) None of the above.

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Definitions:

Large Denomination

Refers to currency or financial instruments that are issued in large values, typically used in major transactions or as a store of value.

Time Deposit

A deposit in a financial institution that requires notice of withdrawal or must be left for some fixed period of time.

Junk Bonds

High-risk, high-yield bonds issued by companies with lower credit ratings, reflecting a greater risk of default but offering higher returns to compensate investors.

Real Estate Prices

The amount of money required to purchase ownership or rental rights to land and buildings.